Valley National Bancorp (VLY) investor relations material

Executive summary

• Achieved record Q4 2025 net income of $195.4M ($0.33 per diluted share); adjusted net income was $180.2M ($0.31 per share), up from $0.28 in Q3 2025 and $0.13 in Q4 2024.

• Full-year 2025 net income reached $598M ($585M adjusted), reflecting improved balance sheet management, funding mix, and strategic investments.

• Profitability surged in Q4 2025, with net income up 69% year-over-year and 20% sequentially, driven by NIM expansion and robust fee income growth.

• Core deposits grew by nearly $4B (9% year-over-year), supporting profitability and capital returns via buybacks and dividends.

• Strategic focus on talent, technology, and relationship banking drove customer engagement and operating account wins.

Financial highlights

• Net interest income rose 10% year-over-year to $466.1M in Q4 2025, with NIM expanding to 3.17%.

• Non-interest income for FY25 reached $262M, up from $226M in FY24, with Q4 2025 non-interest income at $76.3M.

• Efficiency ratio improved to 53.5% in Q4 2025 from 57.2% in Q4 2024, with full-year expenses up 2.6% versus 9% revenue growth.

• Tangible book value per share increased to $9.85 at year-end 2025; tangible common equity to tangible assets was 8.82%.

• Annualized ROA was 1.24% (GAAP) and 1.14% (adjusted) in Q4 2025; ROATCE reached 14.2% (GAAP).

Outlook and guidance

• 2026 guidance: 4–6% loan growth, 5–7% deposit growth, and 11–13% net interest income growth, assuming two rate cuts.

• Net charge-offs expected to normalize to 0.15–0.20% of average loans; provision for loan losses forecasted at $95–115M.

• CET1/RWA targeted at 10.5–11.0%; NIM expected to exit 2026 above 3.30%.

• Non-interest income projected to grow 6–9%, and non-interest expense 3–4.5% in 2026.

• Management anticipates continued balance sheet growth and core profitability improvement in 2026.